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Given the evolution and complexity of the insurance industry, due diligence on carriers, products and advisors is more important than ever, especially for families of significant wealth. Examination of carriers must go beyond rating services; analysis of products must go beyond illustrations, and selection of an advisor must go beyond initial numbers, friendship or branding.

While the tax advantages of life insurance are important, pricing is also critical. Access to policies priced specifically for ultra-wealthy individuals can enhance planning effectiveness and deliver significant value over time.

Researchers tested the effectiveness of life insurance's investment characteristics in three estate scenarios under a Monte Carlo analysis involving three different investment portfolios. Their results show life insurance creates more wealth regardless of when death occurs for even the most liquid, well planned estate.

Policy owners must avoid projecting today's economic environment forward for an extended period, causing them to choose products that lock in long-term mortality and interest rates. Such a move not only virtually ensures long-term underperformance but also sacrifices the flexibility necessary to take advantage of conditions as they change.

In light of the current environment, it is easy to lose sight of the proven policyholder protections that the life insurance industry continues to provide, including regulatory and third-party oversight, as well as mechanisms to support policyholders of troubled companies.

Politics still seem to trump economics in the United States and Europe, although a renewed U.S. downturn seems avoidable and Greece is likely to move ahead with an orderly default. Now may be the time to consider a modest increase in equity risk positions, particularly for information technology and financials.

Many commercial real estate markets experienced a debt-financed investment boom, similar to housing, before the economic crisis. That trend is about to boomerang as numerous portfolios are up for refinancing. Sizeable refinancing risks loom, particularly in markets with sharp price corrections from 2005-2007, a poor economic outlook, or both.

The major rating agencies have published a number of reports highlighting the favorable trends for the life/annuity and health insurance industry. This paper provides a synopsis of recent reports from A.M Best, Standard & Poor's, Fitch and Moody's.

Investors strive to act prudently and to generate good risk-adjusted returns. But what happens when these two objectives are in conflict? The author discusses the conditions under which these goals may be incompatible and offers suggestions for minimizing the opportunity costs that arise when prudence gets in the way of returns.

A sustained level of volatility may actually benefit long-term commodity investors. Tightening supply/demand conditions may lead to potentially higher long-term returns and investors can capitalize on the shape of the futures curve by taking advantage of short-term supply stocks to generate alpha.